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tv   Markets Now  FOX Business  October 23, 2012 1:00pm-3:00pm EDT

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ipad. but again you can never really tell. you can never truly know what surprised the tech giant might have up its sleeve. in moments live to adam shapiro at the event. we also have cameras inside bringing you pictures of whatever this new product could be. on a very serious note, it is an ugly day on wall street. look at that, the dow down 223 points. blaming weaker earnings from major companies, names like 3m and dupont. the outlook for the future is far from rosy and not just in the u.s. around the globe. we will heads to the new york stock exchange in moments. my partner in crime melissa francis surrounded by big money managers and another big event in stunning california. what a day. melissa: absolutely. i picked the short straw. at the td ameritrade conference.
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we have an exclusive look at the td ameritrade conference. fred tomczyk will join us to break it all down for us. there are hundreds of millions of dollars in investments wandering around. we will find out where they're putting their money to work and thinking no better day than a day like this to have so much rain power to help us sort through the day. lori: thank you so much, melissa. it has been 15 minutes since our last check of the new york stock exchange. weak earnings seems to be the culprit for the sharp selloff on wall street. what else is going on? nicole: we have serious concentration of selling. you may remember on friday the dow sold off 205 points. today we are down another 223 points. we have not seen concentration like that.
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it shows you don't normally see this kind of selling back-to-back and yesterday selling across the board every sector, majority of the dow componentcomponent and big nameg out with an outlook to trim their forecasts and th and a bis we have been following from microsoft to intel to ibm. dupont. we are seeing the big names on wall street talking about the global economy. take a close look at apple. we're all waiting to find out what is going on in california for apple and we will get more details, of course. a lot of speculation of the ipad mini and whether it will be 7 inches, around there, competing in price point to the amazon fire and the google nexus. also coming out in a couple of days with their earnings. lori: you just sell the stock down ahead of the events swirling on what will be announced a smaller version of
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the ipad? adam shapiro, what do you know so far? >> tim cook is speaking right now and we can take video from the live web stream. he began by updating the sales process of the iphone 5, updating iphone 5 sales as well as ipod sales may build up what we all expect which is it doesn't have the official name but the ipad mini, 7.5-inch screen, a price point designed to compete with the likes of kendall fire as well as google, the arch nemesis of apple these days. we hope to get the price point from 250-$400. some analysts for the price point on this device could be $199 which would put it directly in competition with the kindle. apple is a tech company.
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we're about to find out with a price tag. let the games begin, so to speak. back to you. lori: thank you for setting us up, we look forward to the announcement likely this hour. thank you. in the meantime let's head back to california where melissa francis broadcasting exclusively from the td ameritrade investor conference. great timing concern the market really change in sentiment it seems. melissa: absolutely. i'm joined by fred tomczyk, td ameritrade president and ceo. thank you for joining us. you put together fourth-quarter sentiment survey for today based on 6 million active accounts, how are investors feeling? >> investors are generally feeling uncertain right now. not to be surprised, there is some unprecedented uncertainty
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in the market. they generally say they are positive on the u.s. economy but their actual behavior is fairly conservative. very much on the sidelines and fixed income right now. i think generally speaking they're hopeful once we get through the election things will get better. melissa: i read s somewhere you thought what will volume year. in six or seven years. is it looking like that? >> we will announce our results a week from today actually but if you look at the exchange volumes, we have been no different. the lowest activity rate that we have seen in five to seven years. the same thing going on in the exchanges going on at td ameritrade. melissa: how do you manage that as a business? does that mean consolidation? your they're poised to pounce? >> there's probably another leg
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or two, but obviously industry historically has dealt with these types of environments through consolidation but we are down to five players. melissa: what do you think has shaken investor sentiment? a lot of people point to the flash crash, high frequency trading, even things like facebook. how big of a dense deep investment in investor sentiment? >> we ask this question in our survey. that is not what is causing the retail aspect. melissa: really? i don't fill a big guy is beating him to be traded on the computer? >> i asked the average retail investor, is about the u.s. economy, the federal deficit and spending, the gridlock in washington, europe and the middle east. unprecedented global uncertain
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uncertainty. melissa: what do you think you can turn that around? there was certainty and present above was president again would that still be enough? or is that the kind of certainty they're looking for? >> i don't think they know what they're looking for, but they want to be clear on what is going to happen with the fiscal deficit, what will happen with the u.s. economy. mosttinteresting thing from my perspective is two-thirds of the people actually believe regardless of which presidential candidate wins, it doesn't matter. melissa: interesting. as you walk around here today, a lot of money walking around this building, what are people saying to you? a lot of results not just results that are weak, but guidance that is weak. >> today people are all searching for what is going to happen in the election.
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most importantly are we going to get washington to work together following the election? look at the world today and if you look at businesses that have a lot of corporate cash and strong balance sheets, retail investors today have a lot on the sidelines, risk-free assets. if we could get washington to get the maligned in the short-term and the long-term, we need to reduce the deficit on the long-term, get rid of some of the uncertainty on the repertory side. u.s. economy will grow faster than most people think. melissa: i had a number of different strangers ask me this weekend randomly what do you think is going to happen to the market after the election? will it go up no matter what? you laugh, but this is what a lot of people are wondering. what do you think about it? that? on you begin to answer that? >> the results will already be in the market by the time the election becomes obvious.
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i'm not sure it will matter as as people think this may change people's sentiment, which is important and which could be positive. i do believe, i mean this sincerely, i'm actually optimistic the two sides get off the two-year fight on the election and the gridlock and get back to governing. that's what they are elected for and that's what people are looking for. melissa: are people with td ameritrade accounts worried about raising the tax dividends? >> is on the radar today. melissa: fred tomczyk, we will do more tonight on "money" with melissa francis. i will be back later this hour as well breaking down apple. back to you. lori: thank you very much. that was a fascinating interview. especially what was holding back investors. in the meantime w we're monitorg the apple event going on in san jose, california.
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just hearing tim cook speaking, the ceo 20,005 messages per second. can you believe that? what an incredible number, huge volume of people using that technology. 20,000 imessages per second sent around the world. still waiting to hear the rumor is an ipad mini, but we will confirm that hopefully this hour. also we will show you metals trade, all this talk about the economy and the presidential debate last night on foreign policy. affecting these markets, gold down 15.90. no surprise, silver down, copper lower as well. copper down 1.5%. we are back after this.
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lori: if you have any doubt on how huge apple is, we're getting more nuggets from the apple event in san jose, california. 28,000 imessages per second, 35 billion apps downloaded from the app store. also hearing from tim cook, the ceo, a new version of ibooks is on the way. let's check the market. a huge selloff under way, but slightly off the lowest levels but still down in excess of 200
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points. nicole: down 1.6% on the dow. the s&p down 1.25%. it is the best performer of our three indices, but we have seen all the earnings coming out in the majority of those s&p 500 companies reported so far are actually missing the numbers are giving weaker outlook so that is why we have had a couple of da days, today down over 200 points. a name bucking the trend, coach. they say a completely different picture, sales in north america, sales in china are back. these are two areas that have seen slowing sales and stay looking good so far. back to you. lori: looking good all the time. thank you. apple expected to unveil a mini ipad.
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getting excited about the tech titan. what does it mean for the company which lost more than $80 billion in market value over the last month and should you have apple in our portfolio? the co-portfolio manager of large-cap growth fund which holds apple for largest holding is that apple is still ripe for the picking. before we get to the story unfolding before us than the other big story is the sharp selloff. what is your take? >> thank you for having me on. i think the environment is just full of mixed signals, the earnings season hasn't gotten off a very good start, first people thought it was okay with earnings coming, but really missing across the board and revenue guidance happening quite
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quickly. one of the negative items is the earnings season that is upon us. lori: sees it as a wake-up call? >> sure, that is the reality that we are operating within is a charging earnings environment, chongqing economic environment. not withstanding that, one of them is the u.s. housing envirot which is definitely getting somewhat better. obviously we hhve central bank using or using monetary policies around the globe and so frankly for the stock market i learned a long time ago when the best environments is one in which there is ample liquidity without they demand.
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lori: i'm sorry to interrupt you, a lot of politics going in there. we think about the positives anyway than against the negatives, obviously. so much of our attention is focused on apple waiting the new product announcement. apple has had such success over a large period of time, it continues to be a market driver, many characterize apple in asset class all of itself. is that enough for the broader market? it can't do it alone. >> as it relates to technology, there are enormous changes going on all at once. they are generational in their nature. change is always out there, there is risk and opportunities but we have the movement to mobility for fixed computing, e-commerce taking greater market
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share, the cloud services phenomenon in the enterprise, digitalization of content creating uncertainty but also creates risk and opportunity and impacting every one of these companies so is apple enough to drive the market on its own? there are a number of companies benefiting from these newer opportunities even if some companies are poorly positioned. lori: we're getting breaking news from the event will get your comments. apple introducing a new 13-inch macbook pro, basically a laptop, it will have better displayed so says tim cook. apple is one of the biggest holdings in your fund. would you buy it at this level? and how much. >> the approach that we have for investing is to look for
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companies for exceptional growth companies. they have above average historic organic revenue growth, visible prospecprospects for that growte sustainable, test advantage meant teams and outstanding characteristics for which to fund the growth opportunity they've got. if you cover up the name apple, clearly the company possesses all of those characteristics. lori: you have google as the second holding. to their new straddle you at all? >> sure. the early release was unfortunate but that is not the core reason why there is controversy around google. the controversy for so many of these companies is the movement from desktop searching in their case to mobile searching and whether that is a mixed change, and opportunity or very negati
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negative, and there are some who fear that is a big negative. we are positive on google because it is taking care of the global advertising pie. lori: made a great point about the potential of growth. we're keeping a close eye on the events going on in san jose, california. we are going to go back there live as soon as the headline product is announced. a mini ipad. 35 billion apps downloaded, lot of details, lot of information from apple. charlie gasparino joins the next with a lot more. first let's check the dollar, how it is daring with the stock selloff under way. a stronger dollar, we will be back with more after this.
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>> at 25 minutes past the hour i'm lauren green with your fox news minute. syrian warplanes attack ad key town held by rebels in the northern part of the country as hopes for a u.n. proposed sees fire paid. assad north the rebels fighting to remove him from power have not agreed to stop fighting before a four-day muslim holiday starting friday. police match ad bicycle a 12-year-old girl was riding the day she disappeared. the same bike was taken from the where atom pasquale was taken from the reciting bin. jerry sandusky was transferred to the county jail to state prison. he is serving 30 to 60 years for sexually abusing 10 boys over a 15 year period. sandusky says he is innocent and seeking to have the
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conviction thrown out or get a new trial. those are the news headlines on the fox business network. back to lori. lori: lauren green, thank you so much. mary shafire row's legacy is a hot topic as charlie gasparino gas -- is reporting. he is here with more, charlie. >> when it comes down to it mary schapiro will be known for a few things. after 2009 she came aboard after the sec came off the madoff debacle, not catching the biggest ponzi scheme of all time from bernie madoff he is and being alerted along the way. sec morale was at extreme low. it has gotten better particularly since the financial crisis. she appointed. a they have a very good investigations going on. insider a trading is a big crime. i believe it is a modest
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crime whatever. they're doing a pretty good job in that respect. i think where she will have a big issue in the notion of, issue of market structure. what do i mean by market structure? there is not two markets, nasdaq and new york stock exchange, following rule nms and host of other rules about five or six years ago there are 50 markets right now. i don't think the sec intended for there to be 50 different markets. if you're at goldman sachs trading desk you can match a trade there and small investor trade can be matched there. there is a problem. because there is very little transparency. that is the one issue mary shapiro has not dealt with and it cost here. the reason we had a flash crash because the structure of the markets are so convoluted. what happened? bob greifeld and duncan niederauer said to mary shapiro and said you need to deal with this. what did she do? she punted. she said she needed more
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support from congress on structural issues. greifeld and sneader hauer said the markets are in disarray. the flash crash was a system of that because of the convoluted structure. she said listen, give me political support and i will go after it. we should point out the political support didn't come. particularly hard to come in an election year. not only that if you talk to people at new york stock exchange and the nasdaq say there is not a lot of support from the staff of the securities & exchange commission to deal with this convoluted structure of the markets. so what we have now after her four years, and by the way, if you listen to her, cheryl casone recently just asked her, are you staying or going? she says she has no plans other than her present job. that is nice way of saying she's done. a matter of time. obama gets reelected probably will be imminently. if romney gets in there they wait until they pick someone else to be there for a couple more months until her term ends in early next year. when that term ends it's going to be without one of biggest issues being dealt
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with and that this bizarre -- people out there, average people should know, when you buy and trade a stock the price you get is not reflective of something that occurred on the new york stock exchange or nasdaq or some transparent market. it could have been goldman sachs making that trade. credit suisse, black pools, is what these things are known. this is trading desk where they can actually acts as a market. it is kind of scary. maybe that is a good thing. maybe that competition is good. she did not explain, she has not explained that. still hasn't explained why it is good. lori: we'll talk more about this. >> you look --. lori: i look rushed. melissa is in california. i've got you here. adam in north california. a lot of moving parts. you bring it as always. that is great story. i want to get into more about spa peer row and her book. >> he has a book coming out. lori: she has been everywhere. >> schapiro or blair? lori: sheila bair blair.
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that is my bad. i'm overwhelmed today. thank you for collecting it. now they're really killing me. so far a new laptop from apple and new updated imac, they're all in one computer but the event is still going. will we have a mini ipad? back to the tech giant's big event in california. more of today's broad selloff. the dow down 220 at the moment. let's check today's winders and losers s anything up right now? actually yes. that is what makes a market. coach up 9 1/2%. harley-davidson up 7 1/2%. a lot more loser than winners. that's for sure. we'll be back with more. ♪
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chances are, you're not made of money, so don't overpay for motorcycle insurance. geico, see how much you could save. >> i'm nicole petallides live on the floor of the
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new york stock exchange. every 15 minutes on the fox business network we bring you stocks now. we check in on hot stocks, stocks that are not and how the market is moving. major market averages are down 215 points on the dow jones industrials. tough day on wall street. adds onto the 205 point loss we saw on friday. not too often see concentration selling in these three days. worst in nearly a year. blame a lot of earnings we've been seeing from a lot of the companies. here is a look at three key names moving the dow, including dupont, 3m and united technologies all coming out with numbers. more importantly all the s&p 500 companies or dow companies are giving outlooks lower than analyst estimates. maybe revenues missed. maybe earnings per share missed. truth the matter they're talking about slowing demand, weakness in the global economy and one of the reasons you're seeing selling that you're seeing. thank you. lori: you summed it up. thanks.
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apple announced a new mac with retina display and mini imac. there is more to come you can bet. adam shapiro joins us from the event. adam, so far the products apple is announcing smaller, thinner, more powerful. does that sum it up? similar to the iphone 5? that is the conclusion. >> most popular selling mac. 1699 bucks get you into one. it has retina display. that as far as being thinner, it is .75 inch thin. so they're very proud of that. weighs 3 1/2 pounds. 1699 bucks, on sale today. so it is deliverable. you've got the mac mini, a computer, $599. they upgraded that. thunderbolt monitor, building to the obvious announcement about the ipad. we're waiting to find out what the mini is going to sell for what they will call
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it, the price point but we're also waiting for the unexpected. apple likes to build up to the big event and say, yay, we've forgotten have a big surprise coming at you. the big announcement will happen any minute regarding ipad mini. lori? lori: we do a lot of these things, a lot of apple announcements. they always come during the 1:00 eastern time hour and seems the big announcement usually comes toward the latter part of the hour, approaching the 2:00 p.m. eastern time? right. lori: would you agree with me on that? >> aagree with you. but what will happen if they're building up to the big surprise. get the announcement much ipad mini. everyone will think we're done and tim cook comes back on the stage and say, we forgot. one more thing. lori: waiting with bated breath. we have a lot of good nuggets thus far. adam, thanks very much. we're expecting according to the blogs the ipad mini to have 7.8 inch screen and starting price of $299. adam has.
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other big stories, sharp selloff after three debates, does the president or governor romney's strong plan to get our economic recovery back on track? lou dobbs weighs in after the break. as we head into break, look at interest rates. is there any reaction to the selloff? look at that. people are flying into bonds today, the perceived security play, pushing yields on 10-year note back down to 1.76%. so the dow off more than 200 points, again, people snapping up the perceived security of u.s. government debt. 30-year coming at 2.92%. we're back after this. [ male announcer ] this is steve.
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he loves risk. but whether he's climbineverest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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>> i'm liz macdonald with your fox business brief. the bearish tone on wall street continues after big-name companies reported weak quarterly earnings and lowered their forecasts for the rest of the year. right now the dow is down 222 points. but in a sea of red there is some green. check point software on the rise after jpmorgan chase boosted its rating to overweight citing valuation. this after check point whoevered around a 52-week low during yesterday's session. most americans concerned about retirement are not the ones you expect. results of a pew survey showed 49% of those aged 35 to 44, they will have little or no confidence they would have money for retirement that is major shift three years ago, baby boomers,
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inching closer to the golden years were most worried. that's the latest from the fox business network, giving you the power to prosper.
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lori: final debate last night, president obama, governor mitt romney went at it for the final time before election day. although foreign policy was the planned topic, rather, the candidates also spoke much about the economy, jobs, education, national security. so after three debates, who had the clear message and what will motivate voters? let's turn to lou dobbs. good afternoon. >> great to see you, lori. it is interesting, i never try to declare a winner of these debates. i think it is all about impossible. with the possible exception of the first debate i think it was such a clear and even historic margin for, for governor romney. but what we're seeing in the polls is this governor continuing to separate from
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the president with two weeks to go to, election day. and, last night i have to tell you i was disappointed that he wasn't more fiery, combative, all of the things that obviously he promised himself he would not be. i think on reflection, he probably took the right course. he took the high road. he maintained the elevated position, and i think probably prevailedded at least in terms of imagery if not, if you will, in the lust for absolute resolution of these issues that separate the two men. lori: i don't know if this is a stupid question so, if you were charlie gasparino tell me right away if this were a stupid question but why didn't he really hold the president's hand to the fire over the benghazi response? >> it is an interesting strategic question. we'll find that out one of these days. i asked obviously the same question. so you and i are --. lori: you're very gracious.
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>> challenged, i will be kind to us. the only thing i can imagine, is that there was some concern on the part of the governor, his campaign staff, with the idea that there is a trap waiting here. because after all, this president has control of the fortress. he controls the facts. he controls those who gather the facts and disseminate the facts. at the margin there are leaks, but he is in many could manned of all of the facts around benghazi. even though he makes much of this we can't talk about this because of fbi investigation which is clearly one of the most absurd things, and most absurd moments i imagine in foreign policy history, to say we can't explain what is going on here. by the way, and then meanwhile his senior advisor is out sunday telling everybody they have been absolutely transparent telling everybody whatever they learned as quickly as reported to them. i mean, this administration has created in benghazi the
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greatest credibility, issue of the administration, and it may be a mortal, a mortal failure on their part. lori: debate season has wrapped up. >> yep. lori: i think it was fantastic and really stripped away all the other nonsense. there were a lot of hiccups with debate and controversy sure rounding this and that and moderator but what is your take from the whole thing? did we get a handle who these candidates are and what their policies may be and what the country may hold. >> you think that is great way to say it. for example, last night, president obama revealed himself, either favorably or unfavorably as confrontational. occasionally, even in my view at least, petty and snarky, needlessly. i mean there is just no point for some of his aggressiveness. and, governor romney has resealed himself to be, centered highly intelligent
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man with great restraint and reserves of intellect that gives him a command of, i mean when you listen to governor romney, here's a guy who hasn't been running the government. he was as well-versed on foreign policy, i thought as certainly the president, that augers well, should he be president for what he is capable of. lori: we'll leave it there, lou. thank you very much. >> good to be with you. lori: tomorrow afternoon, 7:00, 10:00, "lou dobbs tonight.". you are speaking with the author of the best-seller, amateur ed klein. look forward to seeing you tomorrow, sir. >> got a deal. lori: quarter of, let's check markets with in coal on the floor of the new york stock exchange. what gets your attention, nicole? >> looking at all the major averages when talking about the s&p, down nearly 1 1/2%. most of the dow components are been with red arrows. nasdaq also down about 20 points right now. something you should be noting is that the tech analysts, the experts on wall street watch that 200
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day moving average very closely. it was it ining with the 200-day moving average, within 200 points of that particular indicator that is key sign. we haven't seen the nasdaq flirting with the 200 day moving average since june it moved off of that but still under pressure. also look at names in particular, facebook and netflix. these are names reporting, netflix, watching facebook very closely. in the 4:00 p.m. show we'll cover not only facebook and netflix but panera bread, broadcom, just to name a few. we're obviously hitting each one of these earnings. so many have been losers. that is why we're seeing market come under pressure. lori: come on panera bread. come on facebook, don't let us down. it has been such a tough earnings season. thank you, nicole as always. back to melissa at the td ameritrade conference in southern california with
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paul meeks. he has a lot of apple's stocks and what does i think the company's products and its current share price and a look at today's winners and losers. we'll be right back. 0t[h7
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lori: breaking news. we're hearing about a fourth generation ipad with chipset two times as fast. adam shapiro at the event live in san joses, california. tell me, more, adam. >> ipad 4. two times generation wi-fi. double the cpu power. lte expanded coverage. they just announced the 100 millionth ipad was sold roughly two weeks ago. they're also taking a great deal of pride at apple in
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fact 90% of all web traffic from tablet devices is coming from ipad devices. they have not yet given us the price point for this fourth generation ipad. i'm trying to stall here. i'm listening to the actual discussion. but it will come with retina display, this ipad 4. and they're about to announce the price. it will come in black and white. it starts, same configuration as the last generation, 16 gigabyte, $499. so twice the performance. $499 with new features. build up to the ipad mini by the way. waiting for price point on that, lori. the starting point on this new ipad 4, more powerful, 499 bucks. lori: great reporting. meantime shares of apple still trading lower. we have hours to go before this one is in the books. see you this afternoon. back to my coanchor melissa francis in california with reaction to latest news on apple with a key shareholder. melissa: that's right. ooh i'm the td ameritrade
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investor conference and joined by paul meeks, senior tech analyst and someone we lean on all the time to talk to us about apple because you've been a long-time fan and a big shareholder. we're getting drips and drabs of this announcement as adam is listening to it and sending it over to us. $499 he said was the price point. this is off what a lot people were saying earlier this morning. we were talking about competing with the kindle fire, a lot cheaper. what do you think about the price point? >> price point i was expecting 250 to 350. this is little higher. melissa: yeah. >> we need more details about the specks to make sure this is 7 to 8 inch diagonal product which we call the minute any. melissa: we're looking for what is the diagonal. we haven't heard that. we heard the wi-fi is faster. information on the chhpset. what are they missing on the ipad? would this be disappointing if it is 499 like the others? as a shareholder would you be disappointed that they hadn't come up
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with the minnie competing with the kindle -- mini. >> the key driver is not the iphone 5 but iphone 5 ramp. i would like to see them compete better on lower price point space with the ipad but the problem with kindle fire and amazon's products priced at 159, yeah might drive a lot of demand but the problem is they already said they're selling it at cost. if they're selling it at cost, do i want apple to compete there and dilute their profits and cash with a product, boy, i sell a lot of them but don't make any money? melissa: that is a great point. apple said they sold their 100 million inn ipad. what do you think about that? >> not surprising. they have been on a great trajectory. obviously a product in high demand. melissa: the stock has gotten hammered. do you think that is buying opportunity based on what we're hearing? >> i think we may want to wait. melissa: you're hesitating. i can't believe that. >> remember our firm bought the stock with average cost
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of $8.25 a share. melissa: let me interrupt you. said the ipad mini is 7.9 inches. we were talking about diagonal. talking about 7 to 8 inches. one we're looking at for at 499. >> maybe we have to find out what the capabilities are. maybe it is worth 499. more details. third party tech products reviews over next days and weeks. melissa: i didn't want to interrupt you. keep going on your thought. >> the company is coming out with earnings in a few days. melissa: yeah. >> that is always traumatic to try to buy something, regardless what you feel about it before earnings announcement because it is a big data point. again i worry a little bit more about the iphone 5 and iphone 5 ramp than i do this product. melissa: yeah. >> way i look at it is, if you were to take a lock at this company, and regardless what they do, say they sold potato chips you didn't know. they generate $1.3 billion of free cash flow per week. way i look at it give a reasonable market multiple on the stoke it will go
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higher over time. melissa: paul meeks thanks very much. coming up tonight on money with melissa francis we'll meet here at the conference. we have former governor gray davis i will wrestle with him whether environmental regulations are driving up the price of gasoline here in california. we'll stay on the apple story. facebook reports after the bell. we'll drill down on the details. but for now, back to you, lori. lori: you will be wrist link with the former governor? melissa: that's right. leave it to you to go there. lori: don't let the distance change anything. melissa: all about you. lori: thank you. a lot more ahead on apple's new ipad mini as melissa was reporting there. the mini 7.9 inches. the ipad as we note is 9.7 inches. waiting on a final price for the inany. tracy byrnes, ashley webster guide you through the next hour of fox business with all that and more. don't miss it.
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ashley: good afternoon, everybody, i'm ashley webster. tracy: i'm tracy byrnes. stocks stumbled out of gate and really yet to find their footing. a new wave of profit warnings raising fears the economy is nowhere real recovery. we'll have the big movers all hour. ashley: the dow down 214 points. meantime other big story, the apple delivered the tech giant unveiling a new ipad mini with a 7.9 inch screen. it is the new mini. we'll have details ahead. tracy: president obama says alltic defense spending cuts will quote, not happen. how will the fiscal cliff, economy, and more shape the last two weeks of the campaign? we'll talk about that ahead. ashley: the election two weeks from today. stocks selling off. nicole petallides on floor of the new york stock exchange. nicole, the dow, at least we're off the lows of the day. >> right. we were down over 260 points earlier today. we're down 214 points now
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which really shows the selling has continued. on friday we were down over 200 points. yes, i did we had a gain i would consider insignificant day right around the flat line. today another 200 point loss. all of this comes because major companies are giving outlooks that are weak or having to lower their expectations, lowering the lower end or lowering the top end of future earnings per share or sales and the like. take a look here. names like dupont, 3m and united technologies are weighing on the dow jones industrials and down 1.6% for the major average. s&p down 1% as well. apple down 1%. apple, looking for stocks throughout the day. we've seen it down half a percent. we heard a slew of headlines. adam shapiro is there sending them out as well we heard more about the ipad mini, 7.9 inches diagonally. that is something everybody is waiting for light as paper, as thin as a pencil.
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we haven't gotten the price. 4g ipad and i-book and new mac mini which starts at 599. there is lot going on at apple today. we'll continue to make light of it for you. ashley: hard to keep up with all the announcements, nicole thank you very much. tracy: you need a flow chart. let's talk more about apple. apple announcing the highly anticipated ipad mini. adam shapiro joining us from the event in san jose. adam, this is what everyone is waiting for. >> i'm sorry. they interrupted. what were you saying there? tracy: everyone is waiting for ipad mini. tell us about it. >> you have got the ipad mini with all these, you talked about how thin it is, 7.2 millimeters. it weighs .68 pounds. roughly the same as a pad of paper. waiting for the price point here. the size of the screen, 7.9 inches. 10 1/2 hour battery life. it is larger screen than when you get on google's
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android tablet devices, on the nexus. mr. shiller is talking about it right now. one of the reasons they have been hyping ipad, 100 million ipads sold as of two weeks ago. they say it is every inch an ipad and here he comes. no, they're going into a video to talk about it. so when we get to more of the big stuff, what it will cost you, talked about ipad 4, still at 499 bucks, with upgrades to that. mr. ivy talking now about ipad being designed to be powerful and capable. 90% of all web surfing on tablet devices ipads. we'll hear more about ipad mini as we go forward. official name ipad mini. as soon as you get you some more price points i will. ashley: great stuff, adam. thanks for staying on top of this. more on apple. they just announced as adam said a new ipad mini. joining us on apple's ipad
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mini and new products the lead blogger at the apple unofficial weblog. thank you very much for being here, michael. let's get right to the news. we knew it was coming. it is 7.9 inch screen diagonally so it is a the mini. what do you get about this. >> very interesting position for aptell to make take. they talk about textbook market and school market. there are competitors starting to move into that space. this is actually google's device. this is the nexus 7. they were actually comparing very direct directly the new ipad mini to the nexus 7. it is wider. gives you more room to maneuver. this is the product category and space apple is moving into. apple's device will be thinner and will be lighter and have that ipad experience which is what consumers seem to want. tracy: they also announced the fourth generation ipad, a new i-book and a new imac.
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>> yeah. tracy: you need a flow chart with all this. >> they pretty much hit the whole product line. tracy: they did. they basically upgraded everything. >> the fact that the company is able to do this and execute on all these different fronts, only a few weeks after launching the iphone 5 which is unquestionably the biggest product in the portfolio. makes as much profit as gdp of some small countries, to have all the desktop and laptop products or the 13 inch retina macbook pro which is found bound to be very popular and imac which was getting long to the tooth to bring up to current speck is very important to sew they are not getting distracted by the shiny item which is the iphone. ashley: does apple risk cannibalizing itself with awe these products particularly the mini ipad. people may forsake the big one? >> that is really good question. apple traditionally has not been afraid to put its own leading product out of the market. ashley: better than someone
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else. >> exactly. if you're going to be replaced. if you're at ipod which is 11 years old this month and you're the leading music player in the market how much better to knock it out with the iphone than have someone else come along and do it? apple is not afraid of that sort of creative destruction. obviously there will be some marginal decrease in the number of full-size ipads sold as people move toward the mini ipad. also as soon as we get a price point we'll know how much of a market it will open up. tracy: michael, of the announcements you heard today, which one are you most excited about? >> i think the mini ipad will obviously get the most attention. i think that the actual refresh of the full-size ipad is very importanting because, --. tracy: fourth generation. >> fourth generation. to your point, ashley, this is a device only six months in the market and is being refreshed already to include lightning connector, new interface and faster processor and so forth. really an indication there is no opportunity for competitors to get a leg up.
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tracy: no. if you had the two, you didn't go to three. heck, i have got to get the four. there you have it. pretty genius. >> the mini as they said will be huge for education markets. it is sized for students. it is sized for ereading. still has capabilities of full-size ipad. ashley: i think it is remarkable the mac outgrown pc market, according to apple for six straight years. that would get dell shaking in its boots and hewlett-packard. >> it is easy to grow year-over-year when you're starting from a very small base. ashley: true. >> but the mac obviously resonated with consumers. it is still a great product for apple, still a great business and the two operating systems, ios and mac-os-10 are to a degree merging in terms of functionality. a lot of features in mountain lion, new mac operating system are inherited from the ipad and iphone operating system. if you have one it is a lot easier to make the jump to another. ashley: let me see. numbers coming down here?
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32 gigabyte ipad, mini 429. >> and they're saying that the 16 gig 329. 329. that is a little higher than --. ashley: 299? >> we were looking for 299 mostly because you're talking about competing with the kindle fire hd and nexus 7. both start at 199 but you can, i think apple will make argument this is product that is going to last you longer. ashley: cheaper for schools education outlets to come. tracy: go to the fourth generation for 499. as i said you need a flow chart. mike rose, thank you very much. >> my pleasure. tracy: confusing. the other big story today of course is the stock market. dow down 222 points right now. up next we'll have a live update from the new york stock exchange on this broad based selloff. ashley: really is. plus dupont joining the list of companies citing uncertainty in their profit warning even though some prominent economists say, that is not a problem. we'll see. liz macdonald is on the
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story coming up next. but as we do at this time every day let's take a look at the metals for you. we know oil is down in this market. check out the metals all down as well. concerns about global slowing and demand for pretty much everything. we'll be right back. are we there yet?
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ashley: we continue to follow the latest news from apple. we know they unveiled the ipad mini. it has 7.9 inch diagonal size. we understand the 16 gig, basic level, 16 gigabyte will sell for $329. some people thought maybe 299. but $329. start putting in preorders this friday, october the 26th. and then they will begin ship on november the 2nd if you have to have the ipad mini. there is the new imac 1 inch, which is thinner, lighter, smaller. normally when you go for big announcements things get bigger. in apple's case things are the abouting smaller. tracy: fourth generation ipad. they basically over last couple months reinvented and pushed every product. ashley: there you go. up-to-date. tracy: you know what else is amazing? liz macdonald. she's here. united technologies, dupont, ups citing uncertainty in
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their warnings which are rattling wall street but some economists maintain uncertainty has nothing to do with the stalled out recovery. list liz macdonald with emac's bottom line. how can they say there is no uncertainty? >> paul krugman is writing, uncertainty scam. he is putting up a column with the headline. it is right-wing talking point that uncertainty about the president's policies is holding back the economy. he is essentially arguing we've been you there the worst economic collapse ever since the great depression and we need more government spending. hang on a second. hang on. hold your horses. we have to look what business executives are saying. i'll tell you something. nowhere in paul krugman's column is a mention of what business executive surveys are saying. this is from pricewaterhousecoopers. 1,000 fortune 500 executives surveyed. 3/4 said economic uncertainty is top risk. they cited health reform,
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regulatory risk and tax policy. look at this one from the u.s. chamber of commerce. you will see here 83%, virtually a majority of nearly 1400 small businesses say they're not hiring due to uncertainty about fiscal policy. they're also worried about tax and regulatory policy. also health reform. we move on. national small business association. you will see there, nearly 70% say uncertainty again is why they're not hiring. also they're worried about their own survival as a business. you will see it, nfib, the national federation of independent businesses. it too is saying uncertainty about the economy, health care reform, and d.c. policy the top reason why they're not hiring some this debate really, really matters because the people who read paul krugman aad that side of the aisle would say government spending is how you're going to fix the u.s. economy. and business executives are saying wait a second there is really uncertainty about d.c. policy. ashley: we would love to hire. we love to expand. tracy: do you really believe
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that people that read paul krugman believe it? >> when you look at comments they do. sure, i've been through paul krugman's columns and following him extensively. his columns get picked up across the internet and taken as gospel and bible. nowhere, also get, this paul krugman's cites goldman sachs research in there to support his claims. did not cite what goldman sachs is saying uncertainty about the fiscal cliff is not why they're hiring. using goldman sachs arguments to report it without reporting what goldman sachs is saying. we have the story on the website. look at it. good stuff. tracy: liz's story is on the fox business website thank you, girl. >> sure. ashley: get to the other big story of the day. more on that selloff on the markets. nicole petallides on the floor of the new york stock exchange. nicole, no doubt about it, earnings hitting the market hard today. >> there is no doubt. we've been under pressure here all day long with the nasdaq composite testing the 200 day moving average, a couple of points off the 200 day moving average to be
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more specific. just the fact it is hovering around those levels, the selling we've seen in three days, the concentration of that selling. 200 point loss on friday. 200 point loss today. we haven't seen that type of concentrated selling for nearly a year. so we are seeing the markets under some pressure here. a lot of this comes from earnings. let's look at some key names including 3m. everybody knows 3m pour post-it notes and scotch tape. the truth is they're giving an outlook where they have to cut numbers. a soft global economy. while they are seeing sales they're seating softening. that is not good news for them. dupont, we're talking about dupont, they're warning about demand and also cutting jobs. there is united technology also under some pressure after their numbers. those are three dow components today alone have come out and have given warnings. back to you. ashley: yeah, indeed and look at the impact, down 232. nicole, thanks very much. we'll be checking back with you in 15 minutes. tracy: coming up.
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we have two weeks until election day. how will last night's debate actually shape this race to the finish? ashley: first let's look how the good ol' u.s. dollar is moving now with markets falling here in asia and in europe. guess what? it's a flight to safety, the dollar, as you can see all the currencies except for the yen falling to the dollar today. we'll be right
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back. >> roughly 22 minutes past the hour. i'll lauren green with your fox news minute the pentagon says it will not reclassify fort hood shootings as terrorist attack rejecting outcry from 160 victims it. defense officials are concerned they would bias the case against gunman major nidal hasan. fort hood is classified as an instance of workplace violence. iran's oil minister today said the islamic republican could stop export of oil if western sanctions intensify. iran has a plan b strategy to keep the nation afloat without revenues from oil exports but did not elaborate. there is new report out that says male beluga whale can mimic human speech. scientists in san diego recorded a captive beluga whale for years after they
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heard what sounded like human chatter coming from its tank. scientists say the mammal as close proximity to humans could have allowed it to pick up the habit. that is your fox news minute. i'm lauren green. back to ashley. ashley: i want to know he said. more fish, give me more fish. lauren green. thank you so much. >> thank you. tracy: who sung baby beluga you think of that. somebody sung it, i know. foreign policy wasn't the only focus of last night's final presidential debate and it was not baby ba lug fwa unfortunately. listen to what president obama and gop candidate mitt romney had to say about looming cuts to military spending. >> cut our military budget by a trillion dollars which is combination of the budget cuts the president has as well as sequestration cuts. that in my view is making our future less certain and less secure. >> bob, i need to comment on this first of all the sequester is not something i proposed. something that congress has
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proposed. it will not happen. tracy: well, for more on all this i'm joined by former virginia republican tom davis, now director of federal government affairs at deloitte, and fox news contributor alan colmes and sitting next to me and might hurt me. >> we were arguing through the entire break. tracy: i'm going to tom first because it is safe. tom, we ripped this thing apart six ways till tuesday. what was one thing you wanted to hear last night from positive romney that you did not hear? >> well, i think he could have been more forceful maybe in his retorts to some of the president's assertions but i think he by and large did a good job. he didn't rock the boat. didn't make a gaffe. i think he passed the test voters are looking for, would he be a chief executive that could handle foreign policy. that is what he had to do at this point i think he passed that. he didn't take any chances. as you notice, the president was on of offensive because he is looking at creeping poll numbers moving up.
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tracy: the president was most certainly on the offensive, alan, even though i know you will declare it a victory all the way to election day. but we didn't get definitive answers out of him. >> what? tracy: for instance he said we must end the nuclear program in iran. how, what does that mean? he will not on his watch allow iran to get nuclear weapon. if we're close enough. panetta said we're at least a year away. he would take action to keep that from happening whether strategic action or ever. romney kept reversing himself. shorter romney what he said. what did romney say different than obama said? he suddenly took moderate positions when he has been taking hawkish positions up until last night. reversed on afghanistan iraq and. tracy: but they both back tracked. tom you will agree everyone was not themselves. no one had the gusto we saw on -- >> obama did. tracy: president obama didn't. >> sure he did. >> this race is fundamentally not about foreign policy. its about domestic policy.
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you could see whenever they got the chance to bring it back to that. >> romney didn't want to talk about. tracy: let him finish. let him finish. >> he absolutely wanted to talk about domestic policy. but he wanted to talk about domestic politics because that is what this race is about and where the administration's on defense. what has happened, alan, over the last month, we've seen the president's numbers hold firm and romney has caught up. it is incumbent you want to change that trajectory. you don't want that to continue because traditionally undecideds break against incumbents when you have bad atmospherics. >> you know the race tightens, congressman. that is the way it is almost always. romney didn't want to talk foreign policy. he didn't have any. >> almost odd to me to separate foreign and domestic policy because in some ways they're completely interchanged. >> they should have brought up the environment. tracy: talk about fiscal cliff. we backed off sequestration. >> whether you say we? tracy: we meaning your team. >> my team never backed off on it. my team. i wish i had a team. this was something we knew was probably likely not to
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happen. the whole idea of sequestration to make a biter pill for both sides so they would have to come to agreement. president was right last night probably won't happen. >> alan, if the super-committee couldn't solve it and they couldn't solve this before the election why are we so sure it will happen in the lame duck. >> wouldn't solve solve it because republicans wouldn't give obama victory in everything. tracy: alan, before we go. >> i'm not leaving. tracy: i love you. tom, last night's debate was it a game-changer? >> no. no. they didn't do anything to stop the trajectory. that romney any has going forward at this point. will be a close race. tracy: congressman, alan colmes. he is not leaving. he will be here the rest of the show. thank you both. ashley: alan really is staying here i feel it. tracy: going to kick me. ashley: very latest on the market selloff. the dow off still 224 points. talking to a trader live from the floor of new york stock exchange next. tracy: federal reserve chairman ben bernanke reportedly raising questions about his long term future
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at the fed. gerri willis has the details next. first let's look at some of today's winners and losers as we head out to break. there are winners with the dow out to 200 points. coach up 9.5% and harley-davidson. 7.5% increase today. we'll be right back.
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ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent.
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nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. dennis: we are right in there. breaking news coming ipad mini starting shipping november 2, pre-orders october 26. 9.7 inches diagonally.
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tracy: the fancy smart covers for the kids because they're focusing on the educational aspect of this whole thing. stocks under heavy pressure. nicole petallides on the floor of the new york stock exchange looking at apple. it has dropped in the last half-hour. nicole: let's take a look at apple with an intraday chart. giving us insight in the major averages. take a look at all the things released today from apple from california including the ipad mini. we also heard more about the mack mini, and the 13-inch macro. what else is selling off in a major market averages, what do you think about this action we are seeing over 200-point loss today over 200-point loss we send as friday. >> i felt the market has gotten a little ahead of the fundamentals anyway so i'm not surprised to see it pulling
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back, i think it has a lot to do with earnings not so much the earnings as the guidance. most importantly stocks like ups or a barometer and when they are worried about the holiday season i think there is something to be worried about. nicole: at this point you would like to see it sell off a little bit more before you pick it up again. >> i would like to see it down 1000-point and i would be happy to get in. we have a long way to go. i think it depends on the fiscal cliff, the fiscal cliff is a good possibility. nicole: back to you. speak to the voice of wisdom down on the new york stock exchange. we will see you in 15 minutes. ashley: fed chairman ben bernanke raising doubts about his long-term future absent. bernanke has told close friends he probably will not stand for reelection for 2014 even if
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president obama wins the election. coming after g.o.p. candidate mitt romney told fox business first that if elected he doesn't plan to renominate the fed chairman. gerri willis with more on the story. i matter who is in office, bernanke says i am out of here. >> he's behind the biggest federal reserve balance sheet in the history of balance sheet. agreed to buy $40 billion per month of back securities. keeping the economy from skidding into the toilet, i guess. you have to say that his success, we are not sure. i am sure our downturn could have been worse but we certainly are not growing expansively. will be the next fed chairman? i am not sure i can answer it but some candidates, probably glenn hubbard worked for president bush, well-known, published a ton.
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if obama stays in office, i am not sure who will take that job. it is sort of a thankless position. whoever has it after bernanke will be very difficult because you are due to have expanded the federal reserve don't shoot, interest reserves have to come up, and will be pretty. everybody will argue with you to keep the rates low. tracy: we know larry sink wants it, although he will never get it. there are some names being talked about. >> if i were ben bernanke i would get on. ashley: a very lucrative tour. >> on the other hand he prides himself having understood the great depression and saving, you would think, he is not saying this now, but you think you would like to see us on the
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right track before he goes. alan greenspan, remember that name? now we look back. it's the one that is exactly right. >> have to believe he has had enough. tracy: i agree. ashley: more on this tonight. what have we got? >> more on this tonight. it will be talking about last night's debate. i will take a look at a brand spanking new jobs plan that the president has put out. two weeks away from the election, maybe it is time for a jobs plan. we will analyze that. ashley: thank you for that, gerri willis at 6:00 and 9:00 p.m. tonight. tracy: some breaking news for you now. oil hitting levels not seen since july. just closed the day at $86.67 per barrel. now down over 2%, and again fears on global economies slowing down.
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tracy: coming up we have much more on the heavy selling for stocks. live update from the new york stock exchange. ashley: sears one half of the dodd-frank reform law but even barney frank says the government is going too far against jpmorgan on bear stearns. that city every day at this time, a look at the treasuries, the tenant 30-year -- 10 and 30-year as the prices going up. the 30-year down six basis points. we will be right back. [ male announcer ] the markets keep moving.
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>> i am lori rothman with your fox business brief. a bearish tone on wall street continues after weak quarterly numbers and the forecast for the rest of the year. the dow down 616 points. a judge in hawaii rules online travel sites won't have to pay the state hotel room tax per period of time coverin covenants 99-2011. the ruling could save companies close to $200,000 in back cost. your smart phon smartphone may g you sick. bacteria from your phone can cause th a fluke or pink eye, stomach disease. cell phone cleaning products can damage the screen and leave millions of germs behind, but help may be on the way.
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companies were cancellations to fight the bacteria's. that is the latest from the fox business network giving the latest to prosper.
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speak to jpmorgan, the nation's largest bank by assets has found a defender believe it or not and democratic congressman barney frank. says the government is going after the wrong bank, going after the bank for possible misdeeds of bear stearns which they acquired four years ago at the government own urging. calling it a case of no good deed going unpunished. i think ashley said that and he ripped it off. sorting it out for us, judge andrew napolitano. found religion.
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>> i agree with him, those of us who watch these things at you with him. if you buy an asset, you buy it with all of its value and all the drawbacks. one of those drawbacks may be the asset here at bear stearns harmed some people before you bought it, so you assume the liability bear stearns had. but that assumes your acquisition was voluntary. do you remember the world about four years ago? the fall of 2008, the government just spent billions bailing out aig, government given billions wasted to general motors and the government then hank paulson, the tree of the treasury and ben bernanke were basically telling these things you have to do this to stay alive and basically said she jpmorgan you have to buy bear stearns would he want to or not. the same government which now told bear stearns to buy bear
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stearns is suing jpmorgan chase because the people who lost money on bear stearns was bear stearns. ashley: how does this play out in court. if you buy something taken everything that comes with it, that is why you do due diligence. >speak of the government that compels the acquisition by jpmorgan chase was the federal government. the suing party is the state of new york. they certainly knew what was going on. all hese were cooked up in d.c. or down on wall street two blocks from here. ultimately a case like this is settled with a transfer of billions in cash to the treasury of the state of new york, not to the people whom the attorney general says were harmed at bear stearns. this is again just another government scheme to transfer cash.
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tracy: y. now barney frank coming out with this? >> a lawsuit was just filed about three weeks ago and maybe he just now became aware of it. i give him kudos for intellectual honesty. even somebody like barney frank, the father of dodd-frank acknowledges at times the government can go too far and this is one of those heavy acknowledgments. tracy: judge andrew napolitano, always great to have you here. ashley: with second time around the better for facebook? the social networking giant is set to report third-quarter earnings after the close today. will the company fare as google did with disappointing earnings or will it beat the street's? dennis kneale covering the story joins us now. >> the big question, can facebook get its mojo back? and on the second ever earnings report after the bell today and the startu start of that can doo wrong has done little but kumble and stumble since it went public in may. down 50% or so since then.
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today up a bit in a down market, i believe. here's what to look for after the bell. revenue up almost 30%, $1.23 billion. earnings up 25%, expectations are just shy of $300 million. those are impressive numbers but growth is slowing. in the third quarter a year ago the growth rate was three times as high as both revenue and earnings as it is for the current quarter expectations. wall street looking at the move to mobile. here's a look at where facebook stood in june almost a billion regular monthly users of all types. half our mobile users. up from a year. facebook can maintain the growth in mobile profit margins could go down because of that exact same growth mobile ads bring in lower prices, they get less.
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zynga felt the sting in the courtly results disappointed a couple of weeks ago. down 75% this year and mobile rides a problem or google apps which are earnings fell out of bed down 19% and the stock plunged because the price perc click fell 15% despite the high demand and the cheaper mobile shift that is now dog and facebook. we will see how they do today. ashley: thank you so much. don't miss our extensive coverage of "after the bell" earnings. all coming in down after the bell at 4:00 p.m. eastern time and you can catch them on fox business. tracy: a busy afternoon. time for stocks as with every 15 minutes, nicole petallides on the floor of the new york stock exchange. market selloff sparked by weaker earnings but believe it or not you found a little shining star, didn't you? nicole: that is right.
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dow jones industrial is actually improving some, they had been down over 260 points earlier in the day, hopefully not too far off those levels, a little improvement as we are approaching the closing bell, now down 210 points for loss of 1.5%. maggiore have been in the red. here is the shining star as tracy was talking about, when we look at them their lower courtly profits came in, they cited slower trades. they narrowed their outlook on the lower end of the range and little higher, year over year better than last year and so up nearly 3%. back to you. tracy: thank you, nicole. ashley: the euro tumbling on new fears of spain, what is new there? when you next. tracy: a look at the winners and losers on the nasdaq.
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yahoo after recent earnings announcement up 6%. we will be right back.
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tracy: oil coming to levels we haven't seen since mid july. jeff flock at the cme with more. >> 6% over the last three sessions and still falling.
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you said you're in a little bit of a quandary on oil right now, right? >> on the oil especially. july numbers if you look at the data for july, global usage of crude was the largest single month usage ever. however this market is trading just abysmally. look at the front month of crude losing ground to the back trading like a bear and the trading action reflected that. >> the economy says down. >> i'm sure that's one of the reasons were exploded a downside today because it's going along with the equity market. >> a group from poland here. these are polish looking at the cme today. welcome, second-largest polish city in america, chicago. tracy: excellent. jeff flock, thank you very much. ashley: the euro falling to a one-week low against the dollar in spanish borrowing costs rising again as pressure mounts
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on spain. the wait goes on. the euro down. joining me now, senior currency strategist. let's begin with the euro. you say this is range bound trade right now. >> peasants wer has been suppore moving average. awas in high school the 132 area so it has been a consolidation over the past several weeks while everyone is waiting for spain to make a move or waiting for a new catalyst. ashley: what happens if spain finally owned up and says we really do need a bailout, what kind of action to expect on the euro with that? >> we could see her reaction higher on the road triggering the ecb program for they will start buying bonds, something in place for a while and hasn't been activated yet so if they do request aid and activate the program, we could see initially a movement higher.
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in the long term still have potential recession right now in the euro zone and the fundamentals remain weak so in the long term we are looking for euro weakness. ashley: i can totally understand why. another global economy is slowing. that has the impact of risk appetite. the dollar clearly wins in that, does the young pickup as well traditionally? >> traditionally, yes. you look at what the two central banks are doing, the fed printing unlimited amounts of paper doing quantitative easing while the bank of japan has a set amount. i know how much they're doing, 80 trillion yen. and because you're looking at buying the u.s. dollar or the japanese yen as a haven for me want to buy the japanese yen because they have a limited amount of qualitative easing. ashley: very interesting. the stronger yen terrible for
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exporters, that is a huge part of their economy. >> that is right. the japanese yen doesn't reflect the fundamentals because the fundamentals have been coming out week while the currency has remained strong. it has been a problem for them. ashley: where has that gone in recent months? chinese economy has slowed down, has that had impact on th it? >> that has had impact on all currencies in every sentiment in general. we will see data outs tonight while official manufacturing out of china and what we're looking for is what is that slowing growth going to turn around in china, when is that going to bottom out? depending on how the pmi numbers come out, that could dictate sentiment moving forward. ashley: very good, thank you for being here. appreciate it. tracy: we have a big selloff today.
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dow down 207 points now. what happened to the rally? up next liz claman will speak with david rosenberg. the band is not playing. find out why. "countdown to the closing bell" is next.
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liz: good afternoon, everybody. i am liz claman. it is the last hour of trading, "countdown to the closing bell" begins right now. we're looking at a pretty significant selloff. the dow wa dallas entr'acte refs october loss since 2008 and at the lows of the session the dow was down 262-point as you can see down 199 at the moment but not a great day.

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